I have a billboard tenant that consistently pays late and per the terms of the agreement I have been adding a late charge. Questions:
1) Is it ok to accept the rent payment without the late payment? Should I send the check back and explain that I don't accept partial payments?
2) What recourse do I have if they continue to ignore the late charge? Pay an attorney a few hundred dollars to try to collect a few dollars?
You have to weigh your cost vs time investment. Based on how much legal cost and how much the late fees are is your decision. I would not want my tenant to leave or get kicked out if there are a few days late as the turnover cost would / could crush your cash flow for several months.
You can accept rent without late payment, just keep track and records.
If they continue to ignore the late payment you always could give them notice to vacate and then fight them through the whole eviction process. Again it comes down to if its wirth it or not for you.
Hi William Jermaine here, a good friend of mine is in to billboards, from what I understand his tenant pay in advance for the upcoming month, and if he does not get a payment he can suspend there add with a click of mouse.
Ooo William you don't have electronic billboards, you are leaving so much money on the table, upgrade to electronic billboards and you won't have that problem anymore.
How late are they paying?
I am assuming you own the land and have a lease with an outdoor company, is it a major company or a small local one?
2-3 weeks late. Land is leased and I make monthly payments (on time). It is a smaller advertising company with a casino for a client. The lease was in place when I purchased the board and does allow for the late charge (good) but does not require monthly payment in advance (not so good). It also allows for the removal of ad copy for non-payment.
My first board. Maybe my second will have a mouse.
Thanks for the info. Having the tenant leave would really not be a good thing.
Off topic, but how much, on average to billboards rent for monthly? I know, I know, "it depends," but what are some ranges? Sorry to hi-jack the thread.
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